Well, the next step up is 1280x1024. The problem with that is that it's a 5:4 ratio, not a 4:3, so some things can look "squished". The 4:3 version, 1280x960, isn't quite as ubiquitous (though most/all modern, resolution-independent games should support it).
actualyl in recent years I've seen quite the opposite, 1280x960 is often a choice and 1280x1024 is not. Historically I've always gone with 1280x1024 but in the last couple of years have often been forced to 960... I solved by upgrading my system and monitor and playing at 1600x1200